For the first time in years, extensive development at the Peninsula at Bayonne Harbor seems primed to begin, city officials said, topped off with the announcement last week of the Harbor Station South developer.
The city announced on Sept. 16 that Kate Howard Ltd. will be the developer of Harbor Station South, the southwest portion of the Peninsula and adjacent to Route 440, at the former Military Ocean Terminal (MOT).
“This is a major step in the right direction as we pursue full development of the MOT,” said Mayor James Davis.
Development of Harbor Station South is part of the overall plan for the MOT, city officials said. In addition to this agreement, the city is in the process of approving site plans for 400 residential units to be built by Fidelco and 500 rental units by Atlantic Realty property.
The Davis administration has said that the development of the former U.S. Army installation was one of its top priorities.
The plan being developed will include a 300-room hotel and retail and restaurant space. In addition, 750 residential units will also be part of the plan.
City Council President Sharon Nadrowski said the deal with Kate Howard Ltd. means an almost immediate $15 million benefit for Bayonne.
“One of the good things about this deal is since we own the property, as soon as the sale goes through in January, we’re going to get the money and it’ll be a tax ratable come January,” she said of the anticipated closing time. “By this time next year you’ll see work being down there.”
The city will receive $15 million at that time, and if Kate Howard decides to move forward with a second phase of three possible phases, the city would be expected to receive another $15 million in 2017, Nadrowski said.
The plan calls for about 50 retail establishments and restaurants. It is believed that Kate Howard is seeking higher-end retailers and eateries.
“That’s typical of this developer,” Nadrowski said.
The city will also benefit from infrastructure improvements from the deal, with Kate Howard footing the bill for a $4.5 million pedestrian bridge over Route 440, something the city has wanted for years, and the nearby waterfront walkway will be completed.
Approval must come from the state Department of Transportation for the bridge to be constructed.
“We are excited to invest in the city.” – Howard Li
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Enthusiastic about Bayonne
Howard Li, principal of Kate Howard Ltd., said, “We are excited to invest in the city. I believe there is great opportunity to bring a world-class hotel to the area and a premier shopping experience.”
Li is also chairman of the Waitex Group, which has owned a major logistics center nearby on Pulaski Street for 15 years.
Li said he was drawn to the area based on its proximity to New York City, highway access, and public transportation. In addition to being adjacent to Route 440, the land will have direct access to the New Jersey Turnpike upon the completion of the current Interchange 14A improvement project.
Davis said the naming of the Harbor South developer is part of his overall plan to redevelop the city.
“Bayonne is in the early stages of growth, with interest from various developers throughout the city,” he said.
The City Council and Planning Board recently approved plans for a nine-story building on 46th Street and Broadway, and a 22-story building next to the 8th Street Light Rail station. A medical arts building on Broadway between 23rd and 24th streets is also scheduled to break ground tomorrow.
Other Peninsula news
The announcement came on the same day of another major development at the Peninsula at Bayonne Harbor.
The Alexan CityView, an apartment complex at the Peninsula, has been sold by its owner, city officials confirmed at the Sept. 16 City Council meeting.
The complex had 14 burglaries and thefts earlier this year. A suspect was arrested in those incidents.
At the meeting, the council voted on an ordinance consenting to the sale of Alexan by Bayonne Residential Urban Renewal, LLC to CL CityView Urban Renewal LLC, RS Bayonne Urban Renewal LLC, and Verbana Urban Renewal LLC. All three entities are connected with Castle Lanterra Properties of Suffern, N.Y., a real estate or multi-family investment firm, according to spokesman Michael Maffei. He said no further information about the company’s plans for the Alexan would be available until after the deal’s closing.
City Business Administrator Joseph DeMarco said the council consent ordinance was necessary to transfer the ownership name to the new company. Alexan has a 30-year pilot (payment in lieu of taxes) agreement with the city. There were no changes to those terms.
“The sale of this property is another indication that people are willing to invest in the future of the city of Bayonne,” DeMarco said. “This is considered a good thing; that a new owner is going to come in and invest more money into it.”
Joseph Passantino may be reached at JoePass@hudsonreporter.com.